Case Law Details
Solvay Specialities India Pvt Ltd Vs C.C.E. & S.T.-Vadodara-ii (CESTAT Ahmedabad)
Group Insurance Policy was taken in respect of the employees of the company and the policy was issued in the name of the He submits that this Group Insurance is mandatory under the statute for the employees. Therefore, it is not optional for the assessee. Accordingly, it is related to overall business activity. He submits that as regard to reliance of the Revenue on the exclusion category, first of all the Group Insurance does not fall under the exclusion category. Secondly, all the invoices on which the credit was taken was issued from June 2009–2011 though credit was taken in March, 2014. He further submits that even for the period post 01/04/2011, the Hon’ble High Court and the Tribunal in the considered this issue and allowed the Cenvat Credit in respect of Group Insurance Services.
I have carefully considered submission made by both sides and perused the records. I find that very same issue even for the period post amendment in Rule 2(l) of Cenvat Credit Rules, whereby certain services were excluded from the ambit of input services has been considered by the Hon’ble Madras High Court in the case of M/s Ganeshan Builders Ltd.(supra) wherein after interpreting the term ‘Group Insurance’ with the exclusion clause held that the group insurance service is admissible input service and credit was allowed.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is that whether the appellant is entitled for the Cenvat Credit in respect of Group Insurance Services for insurance of staff. The adjudicating authority as well as the Commissioner (A) denied the Cenvat Credit on the ground that the input services were not used either in or in relation to the manufacture of final product and it is not covered under inclusion category of input services and it fall in the exclusion category provided from 01/04/2011.
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